National
Government and organisations at odds over distributing cash as relief
After the government prevented domestic and foreign non-government organisations from distributing relief in cash, they write a joint letter to draw its attention.Prithivi Man Shrestha
Plan International (Nepal), an international non-government organisation, had submitted a proposal on Covid-19 preparedness and relief package to the Social Welfare Council nearly three weeks ago.
But it has not got the approval after the government rejected the foreign organisations’ proposal of cash transfer to people who need relief.
“Of the programme worth nearly Rs100 million, only 25 percent will be used for procuring various medical goods while the rest will be distributed as relief packages as per the proposal,” said Durga Prasad Bhattarai, information officer at the council.
“After the Prime Minister’ Office suggested approval of the Plan’s proposal by altering the component of cash distribution, we have told the Plan to revise the proposal.”
Despite committing to frast tracking the proposal to support the fight against Covid-19, the council is delaying approval of the proposal. “If the government tells us to approve the proposal that contains cash transfer, we are ready to do so,” said Bhattarai.
Although the council announced that it would be encouraging fresh inflow of international aid and fast tracking such proposals, the council is yet to approve the Plan’s proposal to transfer cash to vulnerable groups.
In line with the government’s instruction, the council, in a notice on April 22, had reminded the domestic and foreign NGOs that the government’s relief standard prioritises distribution of goods instead of cash considering that people are unable to go to the market during the lockdown and that relief should be distributed through the local government’s mechanism.
In fact, a policy framework issued for domestic and foreign non-government organisations to carry out preparedness and response activities on April 2 allowed them to transfer even cash as relief.
The entire NGO community is united in favour of cash distribution which they say is more transparent than distribution of relief in kind. The Association of International NGOs in Nepal the and NGO Federation of Nepal, in a joint letter addressed to Finance Secretary Sishir Kumar Dhungana on April 27, requested the government to consider the cash transfer option within the government relief standards for unorganised sector workers and destitutes, citing several benefits of cash transfer.
As the domestic and international NGOs have approached the Finance Ministry seeking approval for cash transfer, the decision on the Plan’s proposal will be taken based on what the government instructs, said Bhattarai.
Among the benefits that the joint letter cites are that the cash transfer empowers people and families to buy the food of their choice—for instance wheat or corn instead of rice if they wish—and make them feel more dignified and valued as rights-holders.
The measure would also keep small and medium scale enterprises afloat and thus save the local economy. “There is a high chance the bulk procurement of food items can threaten many small and medium scale businesses,” the letter adds.
“Vulnerable people do not just need to eat—access to cash allows them to respond to the wide range of issues that arise at the household level.”
The letter requests government bodies to focus on making markets functioning through ensuring supplies and quality control.
Achyut Luitel, president of the Association of International NGOs in Nepal, a grouping of foreign NGOs, said the government might have feared that funds could be misappropriated during distribution.
“If the government is not prepared to allow cash transfer out of its own programme, the Ministry of Finance should provide clear guidelines at the local level to allow international and other non-governmental sectors to carry out cash transfer schemes,” the letter stated.
“It is much harder to organise food and non-food items distribution in a way that respects social distancing and avoids spreading the virus and it creates an additional burden on the recipient who needs to arrange for transportation of the goods received.”